THE clear-out at Blues continued today when it emerged that captain Kenny Cunningham would not be staying at the club.

Manager Steve Bruce had said there was a chance the 34-year-old former Ireland skipper could be retained.

Bruce revealed that after the axe fell on seven other players over the weekend, Cunningham was the only senior out-of-contract squad member Blues were continuing to talk to.

But all of a sudden Cunningham has now also been deemed surplus to requirements as cost-cutting measures continue to bite hard at St Andrew's.

Since Christmas Cunningham's future has been in doubt and it was speculated that he would retire this summer.

Had Blues retained their Premiership status, Cunningham was always likely to be replaced as the physical demands and pace of top-level football were beginning to take their toll.

Indeed, Bruce had lined up Curtis Davies and Paul Scharner for his defence only to lose them to rival clubs in the summer and January transfer windows.

But in the Championship, Bruce felt Cunningham could have been a useful asset, not least due to the experience he would have brought to bear.

But finances and possibly other factors have now meant that Cunningham's four-year stay at the club has ended.

"It's always hard when you have to say goodbye to such great servants but, unfortunately, tough decisions have to be made when you find yourselves in the situation we are in," said Bruce.

Cunningham, who turns 35 next month, was named David Sullivan's 'player-of-the-decade' at last year's annual dinner.

The unique award - an embarrassed Cunningham was presented with a silver cup - was a personal tribute by the co-owner to the Dubliner for his contribution since a free transfer signing from Wimbledon in the summer of 2002.

Cunningham made 144 appearances for Blues and his calm presence at the heart of the defence and reading of the game made him a key figure in the team's Premiership campaigns when they staved off the threat of relegation.

The cull of the out-of-contract players plus loanees Jiri Jarosik, Nicky Butt and Martin Latka should save Blues probably between £8million-£10million in wages.

This has lessened the need to cash in on the club's most saleable assets, like Emile Heskey and Jermaine Pennant.

Bruce has warned that Blues need to keep hold of their best players and add to the squad if Blues are to stand any chance of returning to the Premiership at the first attempt.

He pointed out that with Muzzy Izzet considering retirement, Matthew Upson out of action injured for at least six months and concerns over David Dunn also, Blues were very thin on the ground.

Stan Lazaridis, Jamie Clapham, Nico Vaesen, Chris Sutton and Mario Melchiot were all released by Blues on Monday after it was decided they would not be offered new deals.

Meanwhile, Mathew Birley, Asa Hall and David Howland - all aged 19 - have penned new one-year contracts. Winger Birley made his senior bow in the Carling Cup against Norwich in October and also appeared at Chelsea in the Premiership for his league bow as substitute.

Hall, a midfielder and England youth international, spent a successful loan spell with Boston United this season. Midfielder or forward Howland is a Northern Ireland youth international and a reserve team regular.

Blues will report back for pre-season training on June 26 - a day after a potential World Cup second-round match between England and Germany.

The Championship season kicks off before the Premiership, on August 5, resulting in an earlier-than-usual start date for the squad.

Blues are already putting together their warm-up schedule, which could include friendly matches during a short tour of Spain.